BMW has previously put their production on a halt because of the worker’s strike in South Africa asking for 15% wage increase — amounting to triple the inflation rate.
On the eighth day of the worker’s strike, the South African automobile manufacturers and the National Union of Metalworkers of South Africa have reached a compromise with the wage increase. Both parties signed a three-year wage agreement ensuring that workers will get a 10% wage increase this year, and 9% in the next two years.
BMW and other automakers are relieved as the strike comes to an end. Approximately 17,000 vehicles were lost in the halt of production due to the strike.